Twin Cities Burger Chain Owner Charged With Felony Tax Evasion

SOUTH ST. PAUL, MN — The owner of a burger chain in the Twin Cities metro area is accused of felony-level tax evasion, announced Dakota County Attorney Kathy Keena.

Claudia Gutierrez Mendez, of South St. Paul, was charged Tuesday with five counts of filing a false or fraudulent tax return, one count of failure to file a tax return (willful evasion), and four counts of failure to pay taxes (willful evasion).

Gutierrez Mendez owns and operates the Hamburguesas El Gordo restaurants with locations in Dakota, Hennepin and Ramsey counties, officials said. A state audit determined that she owes more than $260,000 in Minnesota taxes.

Between March 2018 and November 2022, Gutierrez Mendez filed sales tax returns that underrepresented the sales conducted and sales tax owed by the business, according to the Minnesota Department of Revenue.

Additionally, from December 2022 through February 2023, Gutierrez Mendez did not file any tax returns despite conducting business as usual and collecting taxes from customers, state officials said.

"I appreciate the partnership and thorough investigation completed by the Minnesota Department of Revenue," said Keena in a statement.

Gutierrez Mendez’s next court appearance is scheduled for June 18.